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How do we classify an investment in which our company has 50% ownership in both shares and voting rights? (no official arrangements exist, it is just a private Company 50% owned by two or more Companies/individuals)
Kali mera
If the shareholding is 50% / 50% and there’s nothing in the constitution to allow either one or the other to carry a casting vote, then it’s in the nature of a joint venture.
I’m not 100% certain on this but I imagine joint venture accounting would be applied
However, if ‘it is just a private Company 50% owned by two or more Companies/individuals)’, it would seem that our 50% shareholding and 50% voting rights give us effective control where the remaining 50% is in the hands of more than one other shareholder
For example 50 / 30 / 20 or 50 / 25 / 20 / 5 or anything similar would mean that ALL the others would need to group together to defeat a resolution proposed by us and that we could always defeat a resolution proposed by them, even if all of them were in favour of that resolution
I imagine that that would be seen as effective control
Daksi? OK?
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